Electric passenger vehicles are becoming more common and soon all-electric rail systems may follow. Recently, Parallel Systems, a company developing automated and battery-electric railcars, gained Federal Railroad Administration, or FRA, approval and additionally secured $38 million in Series B funding.
The round was led by Anthos Capital and included participation from Collaborative Fund, Congruent Ventures and Riot Ventures.
“Together with our strategic partnerships within the rail industry, Parallel Systems is now poised to fully commercialize our battery-electric rail system, starting with the FRA-approved project in Georgia,” said Matt Soule, Parallel Systems’ founder and CEO, in a statement.
The new funds will help the company deploy its first commercial pilot consisting of two electric railcars operating on a 160-mile line in Georgia. The pilot will be the first step in modernizing the short-haul logistics industry, according to the company. The system will enable companies to move goods faster and at lower costs than traditional methods, while being a more climate-friendly solution compared to trucking or traditional rail transportation.
Parallel Systems was founded in 2020 and, to date, has raised over $100 million in total funding.
